For IT companies, there seems to be a slowdown on the revenue front. Sequential revenue growth in the last three quarters of top Indian
IT companies such as Infosys, Wipro, Satyam, HCL Tech has been erratic.
After hitting growth rates of 5-9% for January-March quarter, revenues have grown at a moderate pace of 2-5% in the latest July-September quarter, an analysis shows.
Cognizant has been the lone warrior as it has maintained a steady rate, moving in the narrow band of 6-7% aided by surprising and above-average growth in the troubled financial services segment.
TCS, the country’s largest software company, has been slow to get off the mark but sequential revenue growth rate has picked up in the recently concluded quarter, off a lower-base.
“Results for services mark a new low point. Appetite for offshore services remains well below trend, and we remain cautious on the space, with both TCS and Wipro,” Sarah Friar of Goldman Sachs Global Investment Research said. She estimates revenue growth of Indian IT services to fall to 12% in 2009, from 29% in 2008.
News Source : Indiatimes
